ATLANTA -- It was a traveler`s nightmare. One moment, passengers of Eastern Airlines Flight 855 were dreaming of vacations in Nassau. The next moment, they were falling toward the ocean at 1,200 feet a minute.

In the nick of time, the pilot managed to restart an engine and guide the plane safely back to Miami. Six years later, some of the passengers are still seeking compensation for that terror.

Their cases gained impetus last week when the 11th U.S. Circuit Court of Appeals, in a precedent-setting decision, ruled that the passengers could sue for emotional distress even though there was no physical injury.

``They thought they were going to die,`` said attorney Michael Olin, who represents 30 of the 162 passengers on the flight. ``That`s basically the bottom line. These people thought they were going to die, and they had time to reflect on that fact. It was not pleasant.``

``Some people may have been only frightened during the flight and suffered no long-term damage from it,`` said attorney Joel Eaton, a colleague of Olin who handled the appeal. ``Others may be afraid to fly for their entire lives.``

It has taken years for judges and lawyers to unravel the complex legal issues in the case of Flight 855 as it wound through state and federal courts.

The Florida Supreme Court has scheduled a hearing for June strictly on the state issues involved. In its 55-page decision on Friday, the federal appeals court discussed the intricacies of the Warsaw Convention, a treaty that sets liability rules for international flights.

Damages for mental anguish are allowed with restrictions, the panel ruled. Awards are limited to $75,000 unless plaintiffs can prove willful misconduct or reckless conduct, and they are not entitled to punitive damages, the court said.

The decision itself remains unofficial, stayed by the 11th Circuit until the attorneys secure permission from the Eastern bankruptcy judge to proceed. Bankruptcy actions temporarily halt all lawsuits.

Attorneys for the passengers and for Eastern on Monday declined to comment on the 11th Circuit ruling while they awaited action by the bankruptcy court and the state Supreme Court. Eastern spokesmen had not seen the decision.

On May 5, 1983, the near-disaster of Flight 855 hinged on just a small piece of missing rubber.

The wide-body L1011 was approaching Nassau, Bahamas, when the pilot noticed a loss of oil pressure in the tail engine. As a precaution, he shut it off, and he turned the plane around to head back to Miami.

Minutes later, cockpit instruments showed no oil or oil pressure in any of the three engines. Six minutes later, the left engine shut down, and the pilot tried to restart the tail engine.

The plane was almost halfway back to Miami when the right engine died. As the plane fell from 16,000 feet to 4,000 feet with no power, flight attendants tried to prepare the passengers to ditch into the ocean.

Finally, the pilot was able to restart the tail engine and safely guide the plane to Miami.

A safety investigation revealed that critical O-rings had been left off the three engines when they were serviced by mechanics shortly before the flight, allowing oil to escape. Eastern subsequently changed maintenance procedures to prevent such errors.